Owned By First Data
BluePay, sometimes misspelled as “Blue Pay,” is a mid-size credit card processor and merchant account provider headquartered in Naperville, Illinois. First Data acquired the company in December 2017. BluePay owns a handful of subsidiaries, including Security Card Services and VersaPay.
BluePay Headquarters and Ownership
BluePay is a registered ISO/MSP with Wells Fargo, N.A., Concord, California and BluePay Canada ULC, is a Registered ISO/MSP of Peoples Trust Company, Vancouver, Canada. Founded in 2002, the company has offices in Chicago, New York, Maryland, and Ontario but lists its corporate headquarters as 184 Shuman Blvd #350, Naperville, Illinois 60563. Bala Janakiraman is listed as the CEO of BluePay.
BluePay Review Table of Contents
- Costs & Contract: BluePay offers a three-year contract with an early termination fee of $295.
- Complaints & Service: BluePay has received more than 25 public complaints.
- BBB Rating: BluePay has an “F” rating and has received 11 complaints and 8 reviews in the past 3 years. The company has also had its accreditation revoked by the Better Business Bureau.
- Sales & Marketing: BluePay appears to hire independent sales representatives and has received a low-to-moderate number of complaints about its sales team.
- Rates & Fees: How Merchants Got The Best Rates With BluePay
Types of Businesses Served
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BluePay Rates, Fees, and Costs
|Swiped Rate||2.39% + $0.25|
|Keyed-in Rate||2.99% + $0.20|
|Virtual Terminal Rate||1.00% - 4.99%|
|Payment Gateway Fee||Undisclosed|
|Early Termination Fee||$295|
|PCI Compliance Fee||$99|
|Equipment Lease Terms||Undisclosed|
This is a category that causes BluePay’s rating to fall slightly below average. The processor’s standard merchant account contract is a three-year service agreement with a successive one-year automatic renewal clause. In the event of a service cancellation while under contract, a merchant may be subject to a $295 cancellation fee that is automatically withdrawn from the merchant’s attached checking account. Though the company does not explicitly list rates on its website or program guide, merchant reviews reflect a swipe rate of 2.39% plus $0.25 and 2.99% plus $0.20 for keyed-in transactions.
Virtual Terminal and Payment Gateway Pricing
In addition to its storefront payment processing services, BluePay also dedicates a portion of its website that advertises its virtual terminal and payment gateway services. However, pricing on either of those services is not disclosed. Additional rates and fees, including gateway fees, technical support fees, batch fees, and additional transaction rates may apply to these e-commerce services.
Level 2 and Level 3 Processing Services
In addition to its traditional merchant services, BluePay also advertises that it provides level 2 and level 3 processing for b2b and b2g transactions. Level 2 and level 3 processing rely upon different interchange rates than traditional consumer credit transactions. Accommodating those rates requires different payment processing technology from a merchant account provider to transmit the amount of data required to facilitate the transactions. These services are reserved for b2b and b2g purchases that utilize corporate credit cards.
Other Important Fees
BluePay’s website also fails to mention an annual PCI Compliance fee of $99 or a $15 monthly statement fee among various other intermittent and smaller fees that have been reported in complaints. In some cases, the company may offer interchange-plus pricing to merchants who request it, but BluePay does not openly promote it as a merchant account pricing option. Overall, BluePay’s contract terms are not competitive with the cheapest merchant accounts available.Are you happy with your BluePay fees? Tell us about them before your go!
BluePay Complaints & Customer Reviews
|Total Online Complaints||25+|
|Live Customer Support||Yes|
|Most Common Complaint||Hidden Fees|
Hidden Fee Complaints
There are about 25 negative BluePay reviews filed online, which is a low-to-moderate total for the company’s size and time in business. The majority of the complaints relate to “hidden fees” or unexpected costs that were not revealed during the sales process. Many of those same merchants also complained about being surprised by the $295 early cancellation fee.
Fund Hold Issues
Several recent complaints report that BluePay placed holds on a merchants funds in the from of a cash reserve or security hold. In one case, BluePay responded, stating that the merchant had misrepresented his business type. Generally speaking, holds of these types are not an issue for merchants with U.S.-based businesses and low chargeback rates, so we are inclined to believe that BluePay acted in accordance with standard industry practices in this case. Merchants operating in high risk industries, however, should consider opting for a top-rated high risk merchant account to ensure their needs are met.
Bluepay Services Lawsuits
We have not found any outstanding class-action lawsuits or FTC complaints filed against Bluepay. Dissatisfied merchants who wish to pursue a non-litigious course of action against the company should consider reporting it to the relevant supervisory organizations.
BluePay Customer Support Options
BluePay offers phone, chat, and e-mail support to all of its merchants, but it is unclear whether these lines are serviced by First Data or by BluePay’s independent customer service team. We are awarding the company a “B” in this category but do not consider BluePay to be one of the best customer service payment processors.
BluePay BBB Rating Summary
Key Points - BBB
|Product & Service Complaints||9|
|Billing & Collection Complaints||2|
|Advertising & Sales Complaints||0|
|Guarantee & Warranty Complaints||0|
Note: We have adjusted this company’s BBB rating according to our own standards. To better understand why we adjust BBB ratings, please see our Rating Criteria.
BBB Accreditation Revoked
On November 28, 2018, Bluepay’s BBB accreditation was revoked. It’s profile is prefaced with a notice explaining the reasons behind the revocation:
On 11/28/2018 this business’s accreditation in the BBB was revoked by the BBB’s Board of Directors due to its failure to adhere to the BBB requirement that Accredited Businesses meet and abide by the following standards:
6. Address marketplace disputes quickly, professionally, and in good faith.
6A. Promptly respond to all complaints forwarded by BBB by:
Resolving the complaint directly with the complainant and notifying BBB, or
Providing BBB with a response that BBB determines:
addresses all of the issues raised by the complainant,
includes appropriate evidence and documents supporting the business’ position, and
explains why any relief sought by the complainant cannot or should not be granted.
Despite being notified of the BBB of its accreditation being revoked, Bluepay still uses the bureau’s logo on its website:
Misuse of BBB Name and/or Logo
On 1/3/19 and 1/11/19, the Better Business Bureau Serving Chicago and Northern Illinois sent written notices to BluePay Processing, Inc., requesting that the business immediately cease claiming or implying in any way that it is an Accredited Business by removing the BBB Torch logo from its website, but has yet to reply or remove the logo.
This use of BBB trademarks constitutes trademark infringement and is a violation of trademark rights of the Council of Better Business Bureaus, Inc. The mark may only be used in limited ways by authorized users that have entered into a licensing agreement with the BBB and may not be used in any manner that conveys sponsorship or approval.
At the time of this review, BluePay has a Better Business Bureau rating of an “F” with 11 complaints filed in the last 36 months as well as 4 that were closed in the last 12 months. Of the total BluePay complaints, 2 are regarding billing and collection issues and 9 are related to product or service problems. BluePay has not resolved any of the complaints.
What Merchants Say
In addition to the 11 complaints filed with the BBB, Bluepay has received 8 informal reviews on its profile, all of which are negative in tone. One review describes frustration with being billed after closing their account:
This has been by far the worst experience I have ever had with a processing company. They’re only in it for the processing fees. They do not protect the merchants at all. I was literally told they don’t care by a rep. I had a client that I had concerns about asked them to hold the payment until they called the bank to confirm. They refused. Then charged my account for the payment and the processing fees. I had to call to find out about the dispute. Tried to clear my name. They offer a fax number that never answers when faxing. I asked for an email they won’t provide one. They sent me to a website to upload my response but it’s flawed and when you try to log in it locks your account. I called security and fraud department and the answering machine said they were closed. Two business days in a row. All of this to find out. They allowed the person to enter in a name that didn’t match the invoice. Then put the charge through knowing I told them I had fraud concerns. I’m currently fighting to clear my name. They deserve every bit of the F rating. Criminals know they don’t care and use their services because they’re criminals themselves. I’m giving one star because they won’t let me leave less!!!
Merchants stuck in a similar situation can benefit from understanding how to cancel their accounts without having to pay unnecessary fees.
An “F” Rating
Based on Bluepay’s complaint count, resolution ratio, size, revoked accreditation, and deceptive use of its standing with the BBB we are adjusting the BBB‘s rating to an “F” for the purposes of this review.
Truth In Marketing & Advertising
|Employs Independent Resellers||Yes|
|Advertises Deceptive Rates||Yes|
|Discloses All Important Terms||No|
Multi-Faceted Sales Approach
BluePay appears to rely heavily on independent sales agents, telemarketing, partnerships, online marketing, and an inside sales staff to market its services. Since BluePay keeps the majority of its sales staff in-house, it helps the company maintain a higher level of quality control of the sales process. However, based on merchant feedback, BluePay’s sales team appears to be falling a little short in always openly revealing all of the company’s costs and terms. There are numerous merchant complaints on this site and elsewhere that mention nondisclosure of rates and fees by the company’s agents. If you are concerned that BluePay is overcharging you, we advise seeking a third-party statement audit to eliminate hidden fees.
Teaser Rate Quote
BluePay currently promotes rates “as low as 0.95%” on its website. This rate could set unrealistic expectations for credit card processing costs because merchants will likely only see a small fraction of their transactions process at such a low discount rate. Additionally, it’s unlikely that most merchants will actually get the rates that BluePay displays on its website as evidenced by a previously posted disclaimer that said the company’s rates are really “based on volume, average ticket and the types of credit card your customers pay with.”
We have also located BluePay advertisements elsewhere on the internet (shown on the left) that advertise rates “as low as 0.05%.” These rates are clearly “teaser” rates and are not an accurate reflection of the average cost per transaction for most BluePay merchants. As with the examples on the company’s website, these quotes may give merchants an unrealistic expectation of the rates they will pay and are therefore deceptive in our view.
BluePay Marketing Example
About Phillip Parker
Thank you for reading my review. I hope that it has helped you with your research.
Why I'm Qualified to Write About Credit Card Processing and Merchant Account Services
I'm a former credit card processing sales director who left the industry because I didn't like how it takes advantage of small business owners. It feeds like a leech on businesses and thrives by imposing fees that are nearly impossible to comprehend. Seeing a need for change, I left and built this website help business owners better understand the industry, research merchant services providers, and get refunds of excessive merchant account fees. My experience of working "behind the curtain" in the industry, and using that knowledge for good, has resulted in millions of dollars returned to hard-working small business owners as well as enterprise-level companies.
From the time that I starting working in the merchant services industry to when I left to create this website, I've been on the pulse of payments for nearly 15 years. It didn't seem fair to keep this "insider" knowledge to myself. To lift the fog, I've reviewed hundreds of companies, read thousands of user reviews, and learned the pricing tricks of every provider. If you have questions about credit card processing, you can find the answers on this website.